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James Weston

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Finance for Non-Finance Professionals

Rice University

About this Course

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This short course surveys all the major topics covered in a full semester MBA level finance course, but with a more intuitive approach on a very high conceptual level.  The goal here is give you a roadmap and framework for how financial professional make decisions.  
We will cover the basics of financial valuation, the time value of money, compounding returns, and discounting the future.  You will understand discounted cash flow (DCF) valuation and how it compares to other methods.  We also step inside the mind of a corporate financial manager and develop the basic tools of capital budgeting.  We will survey the how, when, and where to spend money, make tradeoffs about investment, growth, dividends, and how to ensure sound fiscal discipline.  Our journey then turns to a Wall Street or capital markets perspective of investments as we discuss the fundamental tradeoff between risk and return.  We then synthesize our discussion of risk with our valuation framework and incorporate it into series of direct applications to practice.

This course requires no prior familiarity with finance.  Rather, it is intended to be a first step for anyone who is curious about understanding stock markets, valuation, or corporate finance.  We will walk through all of the tools and quantitative analysis together and develop a guide for understanding the seemingly complex decisions that finance professionals make.  

By the end of the course, you will develop an understanding of the major conceptual levers that push and pull on financial decision making and how they relate to other areas of business.  The course should also serve as a roadmap for where to further your finance education and it would be an excellent introduction of any students contemplating an MBA or Finance concentration, but who has little background in the area.

Flexible deadlines

Reset deadlines in accordance to your schedule.

Shareable Certificate

Earn a Certificate upon completion

100% online

Start instantly and learn at your own schedule.

Beginner Level

Approx. 14 hours to complete

English

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Skills you will gain

Financial Accounting
Capital Budgeting
Corporate Finance
Finance

Flexible deadlines

Reset deadlines in accordance to your schedule.

Shareable Certificate

Earn a Certificate upon completion

100% online

Start instantly and learn at your own schedule.

Beginner Level

Approx. 14 hours to complete

English

Could your company benefit from training employees on in-demand skills?

Try Coursera for Business

Instructor

Instructor rating

4.83/5 (533 Ratings)

James Weston

Harmon Whittington Professor of Finance

Jones Graduate School of Business

156,428 Learners

7 Courses

Offered by

Rice University

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Syllabus - What you will learn from this course

Content Rating96%(9,886 ratings)

Week

Week 1

3 hours to complete

Course Overview and Basic Principles of Financial Valuation Discounting

Welcome to Finance for Non-Finance Professionals! In this section you will find general information about the course and instructions on how to navigate the course. For the first week of lectures, we will be covering the basics of financial valuation. We will start with the basics of compounding and discounting rates of return over time. Using these tools we will then move on to valuation using the discounted cash flow method. Along the way, we will demonstrate our valuation tools with a variety of practical examples and compare our analysis with other valuation techniques.

3 hours to complete

15 videos (Total 101 min), 3 readings, 2 quizzes

15 videos

Course Trailer2m

Course Overview & Demonstration1m

Week 1 Overview1m

Human Nature and the Time Value of Money7m

Compounding and Earning Returns Over Time11m

Basic Principals of Valuation and Discounting4m

Discounting Future Cash Back to the Present12m

Discounted Cash Flow (DCF) as the Basis for All Valuation6m

DCF Practical Example11m

Valuation by Comparables8m

Examples and Applications: Bonds8m

Examples and Applications: Mortgages5m

Examples and Applications: Annuities8m

Examples and Applications: Capstone Example5m

Conversations with a Practitioner4m

3 readings

General Course Information10m

Discussion Forum Guidelines10m

Pre-Course Survey10m

2 practice exercises

Homework Assignment30m

Week 1 Quiz30m

Week

Week 2

2 hours to complete

How to Spend Money (Capital Budgeting tools)

Welcome to the second week of Finance for Non-Finance Professionals! In this week of the course, we will build on the basic valuation tools from week one to start making capital budgeting decisions. Our capital budgeting review covers the basic tools like Net Present Value, Internal Rate of Return, Payback period, and return on capital. Our discussion of the relative advantages of each different tool leads us into sensitivity analysis and the advantages of spreadsheet modeling.

2 hours to complete

11 videos (Total 72 min), 1 reading, 2 quizzes

11 videos

Week 2 Overview42s

Overview of the Capital Budgeting Process5m

Net Present Value (NPV)7m

Payback Period7m

Accounting Ratios7m

Internal Rate of Return (IRR)8m

Wrinkles with IRR8m

Using All the Metrics Together4m

Sensitivity Analysis7m

Spreadsheet Modeling9m

Conversations with a Practitioner5m

1 reading

Real World Application: A Refresher on Net Present Value10m

2 practice exercises

Homework Assignment30m

Week 2 Quiz30m

Week

Week 3

2 hours to complete

Measuring Cash Creation and Flow

Welcome back to Finance for Non-Finance Professionals! In our third week together, we will go on a treasure hunt through the financial statements. Using discounted cash flows as our motivation, we search through the income statement and balance sheet for all the uses and sources of cash. Our search leads us to our primary measure of value creation: Free Cash Flow. Free cash flow will form the basis of most financial analysis and this module gives us a roadmap for estimating and forecasting cash creation within any organization.

2 hours to complete

10 videos (Total 60 min), 1 reading, 2 quizzes

10 videos

Week 3 Overview1m

Brief Overview of the Financial Statements8m

Hunting for Cash Creation5m

Working Capital Adjustments8m

Depreciation and Capital Expenditures5m

Salvage and Terminal Values7m

Taxes3m

Calculating Free Cash Flow7m

Using Capital Budgeting Tools8m

Conversations with a Practitioner4m

1 reading

Real World Application: Obama Administration Releases Report Outlining Benefits of Expensing Proposal in Encouraging Business Expansion, Hiring Now10m

2 practice exercises

Homework Assignment35m

Week 3 Quiz35m

Week

Week 4

3 hours to complete

How Much Does Money Cost? Evaluating the Cost of Capital

Welcome back everyone! In our final week together in this course, we switch gears and take an external view of the firm from a Wall Street, or capital markets, perspective. We think about the basic tradeoff between risk and return, how to measure risk, and how to put a risk premium on different kinds of investments. We then take our analysis of risk and return and use it to estimate a firm's cost of capital. Finally, we circle back to free cash flows, capital budgeting and valuation to tie together all four weeks and get ready for our capstone case analysis.

3 hours to complete

10 videos (Total 72 min), 2 readings, 2 quizzes

10 videos

Week 4 Overview1m

Debt vs. Equity Financing8m

Risk Free Rate6m

Historical Risk and Return7m

The Equity Risk Premium5m

Beta and the Cost of Equity10m

Credit Ratings and Quality Spreads5m

Estimating the Cost of Debt6m

Putting it All Together as the WACC (Weighted Average Cost of Capital)12m

Conversations with a Practitioner6m

2 readings

Real World Application: U.S. oil companies closer to balancing capital investment with operating cash flow10m

Real World Application: Why aren't companies spending?10m

2 practice exercises

Homework Assignment (Optional)30m

Week 4 Quiz30m

Reviews

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TOP REVIEWS FROM FINANCE FOR NON-FINANCE PROFESSIONALS

by LBMar 8, 2020

Totally enjoyable! Big thank you to Prof. James Weston, his team and Coursera for making this course available to al of us,the curious learnes wherever we may be on the Globe!

by FSJun 20, 2020

James is a very passionate and communicative lecturer. I really love the way he presents the materials because it makes all the materials are easily digested and understood. Two thumbs up!!

by PMOct 31, 2019

Very insightful and refreshed the concepts I learned in a much better way! Professor was extremely good at conveying the course in the best way possible to comprehend complex topics!

by ABJun 19, 2020

If you are an absolute noob in finance as I am, this course is just for you..Just that sometimes you would have to google a bit for a few terms .... Brilliant work by Rice Uni....

View all reviews

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What will I get if I purchase the Certificate?
When you purchase a Certificate you get access to all course materials, including graded assignments. Upon completing the course, your electronic Certificate will be added to your Accomplishments page - from there, you can print your Certificate or add it to your LinkedIn profile. If you only want to read and view the course content, you can audit the course for free.
Is financial aid available?
Yes. In select learning programs, you can apply for financial aid or a scholarship if you can’t afford the enrollment fee. If fin aid or scholarship is available for your learning program selection, you’ll find a link to apply on the description page.

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